Full Press Release Details
Solventum Corporation
Unaudited Pro Forma Condensed Consolidated Financial Statements
On February 25, 2025, Solventum Corporation ("Solventum", the "Company") entered into a Transaction Agreement to sell its purification and filtration business to Thermo Fisher Scientific Inc. ("Buyer") for $4.1 billion. On June 25, 2025, the Company and Buyer
entered into an Amended and Restated Transaction Agreement to exclude the Company's drinking water filtration business (the "Water Business") from the scope of the purification and
filtration business (the "Business") to be acquired by Buyer and reduce the cash consideration at closing of the transaction to approximately $4.0 billion (the
The unaudited pro forma condensed consolidated financial statements have been derived from the Company's historical consolidated financial statements and give effect to
the Transaction. The following unaudited pro forma condensed consolidated balance sheet as of June 30, 2025 reflects the Company's financial position as if the Transaction had occurred on June 30, 2025. The following unaudited pro forma condensed
consolidated statements of income for the six months ended June 30, 2025 and year ended December 31, 2024 reflect the Company's results as if the Transaction had occurred as of January 1, 2024 for all periods presented.
The unaudited pro forma condensed consolidated financial statements have been prepared based upon the best available information and management estimates and are subject
to assumptions and adjustments described below and in the accompanying notes to those financial statements. Management believes these assumptions and adjustments are reasonable, given the information available at the filing date. The unaudited pro
forma condensed consolidated financial statements have been prepared in accordance with Regulation S-X Article 11. They are not intended to be a complete presentation of the Company's financial position or results of operations had the Transaction
occurred as of and for the periods indicated. In addition, the unaudited pro forma condensed consolidated financial statements are provided for illustrative and informational purposes only and are not necessarily indicative of the Company's future
results of operations or financial condition had the Transaction been completed on the dates assumed. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of
factors. The unaudited pro forma condensed consolidated financial statements should be read in conjunction with our historical consolidated financial statements and accompanying notes, specifically in the Company's Annual Report on Form 10-K for
the year ended December 31, 2024, as filed with the Securities and Exchange Commission (the "SEC") on February 28th, 2025, and the Company's Quarterly Report on Form 10-Q for the quarterly period ending June 30, 2025, as filed with the SEC on
Solventum Corporation
Unaudited Pro Forma Condensed Consolidated Balance Sheet*
(Dollars in millions, except per-share data)
| As of June 30, 2025 | |||||||||||||||||
| Historical Solventum (as reported) | Disposal of Business (a) | Transaction Accounting Adjustments | Pro Forma | ||||||||||||||
| Assets | |||||||||||||||||
| Current assets | |||||||||||||||||
| Cash and cash equivalents | $ | 492 | $ | - | $ | 3,890 | (b) | $ | 4,382 | ||||||||
| Accounts receivable - net of allowances of $87 | 1,065 | - | - | 1,065 | |||||||||||||
| Due from related parties | 190 | - | - | 190 | |||||||||||||
| Inventories | |||||||||||||||||
| Finished goods | 553 | - | - | 553 | |||||||||||||
| Work in process | 173 | - | - | 173 | |||||||||||||
| Raw materials and supplies | 236 | - | - | 236 | |||||||||||||
| Total inventories | 962 | - | - | 962 | |||||||||||||
| Other current assets | 331 | - | - | 331 | |||||||||||||
| Current assets held for sale | 168 | (168 | ) | - | - | ||||||||||||
| Total current assets | 3,208 | (168 | ) | 3,890 | 6,930 | ||||||||||||
| Property, plant and equipment - net | 1,313 | - | - | 1,313 | |||||||||||||
| Goodwill | 5,274 | - | - | 5,274 | |||||||||||||
| Intangible assets - net | 2,302 | - | - | 2,302 | |||||||||||||
| Other assets | 917 | - | - | 917 | |||||||||||||
| Non-current assets held for sale | 2,060 | (1,962 | ) | - | 98 | ||||||||||||
| Total assets | $ | 15,074 | $ | (2,130 | ) | $ | 3,890 | $ | 16,834 | ||||||||
| Liabilities | |||||||||||||||||
| Current liabilities | |||||||||||||||||
| Accounts payable | $ | 643 | $ | - | $ | - | $ | 643 | |||||||||
| Due to related parties | 355 | - | - | 355 | |||||||||||||
| Unearned revenue | 557 | - | - | 557 | |||||||||||||
| Other current liabilities | 1,011 | - | 502 | (d)(e)(g) | 1,513 | ||||||||||||
| Current liabilities held for sale | 54 | 44 | - | 98 | |||||||||||||
| Total current liabilities | 2,620 | 44 | 502 | 3,166 | |||||||||||||
| Long-term debt | 7,815 | - | - | 7,815 | |||||||||||||
| Pension and postretirement benefits | 354 | - | - | 354 | |||||||||||||
| Deferred income taxes | 231 | - | (76 | ) | (f) | 155 | |||||||||||
| Other liabilities | 371 | - | 118 | (c)(g) | 489 | ||||||||||||
| Non-current liabilities held for sale | 38 | (38 | ) | - | - | ||||||||||||
| Total liabilities | $ | 11,429 | $ | 6 | $ | 544 | $ | 11,979 | |||||||||
| Equity | |||||||||||||||||
| Common stock par value, $0.01 par value, 750,000,000 shares authorized | $ | 2 | $ | - | $ | - | $ | 2 | |||||||||
| Shares issued and outstanding - June 30, 2025: 173,387,361 | |||||||||||||||||
| Additional paid-in capital | 3,806 | - | - | 3,806 | |||||||||||||
| Retained earnings | 468 | (2,136 | ) | 3,346 | (h) | 1,678 | |||||||||||
| Accumulated other comprehensive income (loss) | (631 | ) | - | - | (631 | ) | |||||||||||
| Total equity | 3,645 | (2,136 | ) | 3,346 | 4,855 | ||||||||||||
| Total liabilities and equity | $ | 15,074 | $ | (2,130 | ) | $ | 3,890 | $ | 16,834 |
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.
Solventum Corporation
Unaudited Pro Forma Condensed Consolidated Statements of Income*
(Dollars in millions, except per-share data)
| Six months ended June 30, 2025 | |||||||||||||||||
| Historical Solventum (as reported) | Disposal of Business (a) | Transaction Accounting Adjustments | Pro Forma | ||||||||||||||
| Net sales of product | $ | 3,265 | $ | (369 | ) | $ | - | $ | 2,896 | ||||||||
| Net sales of software and rentals | 966 | - | - | 966 | |||||||||||||
| Total net sales | 4,231 | (369 | ) | - | 3,862 | ||||||||||||
| Cost of product | 1,700 | (191 | ) | - | 1,509 | ||||||||||||
| Cost of software and rentals | 242 | - | - | 242 | |||||||||||||
| Gross profit | 2,289 | (178 | ) | - | 2,111 | ||||||||||||
| Selling, general and administrative expenses | 1,541 | (42 | ) | (63 | ) | (i) | 1,436 | ||||||||||
| Research and development expenses | 381 | (23 | ) | (5 | ) | (i) | 353 | ||||||||||
| Operating income | 367 | (113 | ) | 68 | 322 | ||||||||||||
| Interest expense, net | 207 | - | 2 | (c) | 209 | ||||||||||||
| Other expense (income), net | 19 | - | - | 19 | |||||||||||||
| Income before income taxes | 141 | (113 | ) | 66 | 94 | ||||||||||||
| Provision for (benefit from) income taxes | (86 | ) | (25 | ) | 119 | (j) | 8 | ||||||||||
| Net income | $ | 227 | $ | (88 | ) | $ | (53 | ) | $ | 86 | |||||||
| Earnings per share: | |||||||||||||||||
| Basic earnings per share | $ | 1.31 | $ | 0.49 | |||||||||||||
| Diluted earnings per share | 1.30 | 0.49 | |||||||||||||||
| Weighted-average number of shares outstanding: | |||||||||||||||||
| Basic | 173.9 | 173.9 | |||||||||||||||
| Diluted | 175.0 | 175.0 |
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.
Solventum Corporation
Unaudited Pro Forma Condensed Consolidated Statements of Income (Continued)*
(Dollars in millions, except per-share data)
| Year ended December 31, 2024 | |||||||||||||||||
| Historical Solventum (as reported) | Disposal of Business (a) | Transaction Accounting Adjustments | Pro Forma | ||||||||||||||
| Net sales of product | $ | 6,348 | $ | (709 | ) | $ | - | $ | 5,639 | ||||||||
| Net sales of software and rentals | 1,906 | - | - | 1,906 | |||||||||||||
| Total net sales | 8,254 | (709 | ) | - | 7,545 | ||||||||||||
| Cost of product | 3,172 | (421 | ) | - | 2,751 | ||||||||||||
| Cost of software and rentals | 489 | - | - | 489 | |||||||||||||
| Gross profit | 4,593 | (288 | ) | - | 4,305 | ||||||||||||
| Selling, general and administrative expenses | 2,782 | (86 | ) | (136 | ) | (i) | 2,560 | ||||||||||
| Research and development expenses | 775 | (44 | ) | (10 | ) | (i) | 721 | ||||||||||
| Gain on sale of business | - | - | 1,564 | (k) | 1,564 | ||||||||||||
| Operating income | 1,036 | (158 | ) | 1,710 | 2,588 | ||||||||||||
| Interest expense, net | 367 | - | 4 | (c) | 371 | ||||||||||||
| Other expense (income), net | 64 | - | - | 64 | |||||||||||||
| Income before income taxes | 605 | (158 | ) | 1,706 | 2,153 | ||||||||||||
| Provision for (benefit from) income taxes | 127 | (35 | ) | 385 | (d)(f)(j) | 477 | |||||||||||
| Net income | $ | 479 | $ | (123 | ) | $ | 1,321 | $ | 1,677 | ||||||||
| Earnings per share: | |||||||||||||||||
| Basic earnings per share | $ | 2.77 | $ | 9.68 | |||||||||||||
| Diluted earnings per share | 2.76 | 9.65 | |||||||||||||||
| Weighted-average number of shares outstanding: | |||||||||||||||||
| Basic | 173.2 | 173.2 | |||||||||||||||
| Diluted | 173.7 | 173.7 |
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.
Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements
Disposal of Business
Transaction Accounting Adjustments
| (Millions) | ||||
| Purchase price | $ | 4,000 | ||
| Transaction costs due at close | (72 | ) | ||
| Estimated net working capital adjustments | (4) | |||
| Estimated indebtedness at close | (34 | ) | ||
| Total closing cash consideration | $ | 3,890 |
| (Millions) | ||||
| Total closing cash consideration (b) | $ | 3,890 | ||
| Net assets of the Business | (2,136 | ) | ||
| Transaction accounting adjustments (c)(e)(g) | (190 | ) | ||
| Pre-tax gain on sale of business | $ | 1,564 |
The estimated income taxes due on the gain of the sale of $430 million and the net impact of deferred tax liability reversals of $76 million are reflected in the
provision for (benefit from) income taxes in the condensed consolidated statement of income for the year ended December 31, 2024.